Key Points
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Platinum investment demand is extremely strong in 2025.
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Supply deficits are forecast for the third year in a row.
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China is driving growth in jewellery and investment demand.
Platinum is gaining strong attention as an investment product, with demand rising sharply among everyday consumers, especially in China.
Investors are searching for alternatives to gold, which has become more expensive, and platinum is emerging as a key choice.
Edward Sterck, research director at the World Platinum Investment Council, said retail buyers are showing growing interest in smaller platinum bars and coins.
“We’re seeing Chinese consumers looking for hard assets that are also liquid. With gold prices rising, they’re turning to platinum as an alternative,” Sterck told Mining Weekly in a video interview.
This shift comes as the platinum market faces its third consecutive supply deficit in 2025, with demand outpacing production by nearly one million ounces.
Growing demand from ordinary investors
Sterck explained that the most significant growth is not coming from wealthy investors, but from regular consumers.
“We’re not talking about high-net-worth investors here. It’s retail consumers who see a value opportunity in platinum,” he said.
The trend is visible in the purchase of smaller bars and coins, which shows widespread demand across households.
Platinum’s rising profile comes at a time when mine supply is under pressure. In fact, 2025 is shaping up to be the weakest year for platinum mine production since 2003, if the disruption from Covid-19 in 2020 is excluded.
Current forecasts suggest mine supply will reach about seven million ounces this year, while demand is expected to hit around 7.9 million ounces. That leaves a supply shortfall of close to a million ounces, pushing the market further into deficit.
Jewellery market shows signs of recovery
Beyond investment, platinum jewellery is also bouncing back, particularly in China. Since 2014, global demand for platinum jewellery has grown at about 3.5% per year.
But China now appears to be at a turning point, with wholesalers and retailers pushing platinum to replace gold jewellery, which has lost some appeal among buyers.
“China isn’t a big silver market, so retailers are positioning platinum as the next best choice. We expect a meaningful increase in true consumer demand, but we’ll have clearer data during October’s Golden Week sales,” Sterck said.
The outlook for jewellery demand is encouraging but still developing. Unlike investment demand, which is already “very real,” the jewellery recovery depends on whether wholesalers’ efforts turn into actual purchases by consumers.
Industrial demand faces slowdown, but long-term prospects remain
While investment and jewellery demand are rising, industrial demand for platinum is expected to contract slightly this year.
The main reason is the glass sector, which has seen five years of major capacity expansion, especially in China. With many new facilities already built and running, the immediate need for fresh platinum supplies has slowed.
However, Sterck expects this dip to be temporary. From 2026 onward, glass fibre production could drive new demand, especially as renewable energy projects such as wind power and solar installations expand worldwide.
“Ultimately, we’ll see demand pick up again as glass fibre becomes more important in renewable electricity generation,” he said.
Platinum prices at 10-year high
So far in 2025, platinum has been the best-performing commodity, reaching its highest price in a decade.
Yet despite the rally, supply tightness remains. Indicators such as high lease rates and strong backwardation in the London market show that physical platinum is still scarce.
Sterck noted that while prices have risen, the increase hasn’t been enough to unlock significant new supply.
Mine production is slow to react to higher prices, and recycling has limits. That leaves above-ground stockpiles as the key balancing factor for the market.
In 2025, above-ground stocks are expected to fall by more than 20%, leaving just under three million ounces in reserve.
That would cover only about four-and-a-half months of global demand, a sharp decline that could influence investor sentiment further.
China’s central role
China remains the single most important market for platinum. It leads in both investment and jewellery demand but does not produce the metal itself.
Around 70% of platinum group metals come from South Africa, meaning China depends heavily on imports.
“Ensuring adequate reserves of platinum, both through jewellery and investment products, has become a form of insurance for China against possible supply disruptions,” Sterck said.
Shanghai Platinum Week earlier this year drew record attendance, highlighting China’s growing influence on the platinum market.
Ongoing supply squeeze
The platinum market remains tight. Flooding in South Africa earlier this year reduced output, while Russia’s Nornickel faced equipment supply challenges.
In North America, mine restructuring also weighed on production. Although supply is expected to recover slightly in the second half of 2025, the imbalance remains.
“Our forecast is for ongoing and sustained deficits over the next few years,” Sterck said. “We don’t see a major increase in mine supply, and recycling can only grow so much.”
Unless prices rise enough to attract new sources of supply, the squeeze on platinum is set to continue.
With strong consumer investment demand, a recovering jewellery market, and ongoing supply challenges, platinum’s role as both an asset and an industrial metal is strengthening.
Above-ground stocks are shrinking, mine output is weak, and demand shows no sign of slowing.
Platinum may have spent years in the shadow of gold, but 2025 shows it is increasingly being seen as a safe, valuable, and scarce investment choice.
